Eurozone Inflation Falls to 8.5% - Third Month of Continued Decline

The almost three-quarters of a percentage point decrease to 8.5%, down from 9.2% in December, was the third month in a row that prices in the 20 countries that use the Euro have seen a decline. This positive trend is fueling hopes for a more stable economic outlook in the Eurozone.

The year-on-year eurozone inflation rate for September was released on Tuesday, coming in at 1.8%, according to Eurostat. This was a step down from August's 2.2%, demonstrating a sustained effort to control rising costs.

Hace 1 día The continued decline in inflation means investors expect the ECB to cut borrowing costs by a quarter point next week to 2.0%. That would mark the eighth cut since June, a significant move to stimulate economic activity and encourage investment within the Eurozone.

Eurozone activity is expected to pick up moderately in 2025, buoyed by the fall in inflation and the start of a cutting cycle of policy rates, which, according to our forecasts, will continue to support growth. The drop in inflation is a key factor in this projected recovery.

Stay updated on the latest Eurozone economic news and analysis as we continue to monitor inflation rates and their impact on the European market.